RE: musing6 Mar 2017 11:13
Excuse me - but why do you think labro and his consortium NEED to buy 4.4m over next 4 weeks? Can you explain your reasoning?
If I understand correctly, they have the "right" to purchase another 4.4m WITHOUT needing to trigger an automatic take over event. This was the terms of the last Rights Issue.
If they are planning on a take over, then they can go on buying as much as they want as long as they want - but a take over event will ensue... Of course eventually they will own all the shares in this case.
If however, they only want to buy as many as they can without trggering any such event then you are right they will attempt to pick up the remaining 4.4M within the time limit.
It is my view that they want to take this mine to production and think the value will be considerably higher once they do so. But they do not need and do not want to own the whole company. With that view, they may as well get as many shares as they can at today's prices!
Their buying these last few shares will not be what pushes the price up. In fact if the price shoots up they will stop buying. What will push the price up will be the announcement of a funding solution - whether that be borrowing money or a new partner buying in etc.
The real value of this business is the gold in the ground and the ability to get it out.
IMO DYOR